Mistakes that are Deadly to a Small Business
We have seen how bad computer decisions cost time and money and in extreme cases even bankrupt companies. Here are some common mistakes to be aware of.
No Daily Offsite Backups
Many small business do not backup there systems regularly, and even more do not take the backup off-site. We've all heard the horror stories of the computer that died and the company went out of business. Even though you may have never needed to recover from backup, all it takes is once. (Check out backup recomendations)
Using Business Computers as Toys Instead of Tools
Many small business owners will load games and other non-work related tools on their work computer. Even just installing and uninstalling programs leads to more and more junk on your business computer. This leads to popups, viruses, slowness and general unreliability of the computer. Not what you want for a business computer.
Using Software that is Too Complex
Example: One business used a simple accounting package to track their sales which met their needs. Then upgraded to an enterprise accounting system. The enterprise system required staff to use forms the did not need and was too complex for the size of business. It cost the company so much more to use and train staff to use, that they had to increase prices.
The software that you use is a tool. If it is not helping you to be more efficient, then it is costing you time and money. Ask yourself, Is the software system costing you more than the gains? Including Staff Time? Operating Cost? How often you need to call a tech in? How much time do you spend training new staff how to use? Is it easy and straight forward? Do you yourself have trouble using the software?
Initial Cost is Not Everything
Many small business get wrapped up in the initial cost, that they fail to realize the impacts on staff time, integration/compatibility with other systems and the most important, future support. We have seen many business use a free or open source tool that meets there need now. But when something goes wrong or they need to integrate with another system, there is no one to turn for help. Sometimes the software is just plain incompatible or outdated. We are not saying don't use free or open source software, just be aware of the pro's and con's so that you don't get left holding the bag.
All Aboard the Magic Bullet Band Wagon
If you computer systems are doing what you need them to do why change to a new system? New and feature rich systems come out all the time. Small businesses lose money jumping from product to product because of the gee-whiz features that they don't utilize. It costs small business time and money to get the new system up and going, transfer the data over to the new system and learn the new system.
Companies will promote the heck out of new software, wanting you to upgrade to a new system even when your current system is working fine. Instead of jumping on to the newest product, try streamlining the current product, or upgrading the current product to the latest version. This usually has a better effect.
In business there is no silver bullet, only how efficient and effective are the tools your business use. If the tool is ineffective, by all means change the tool, but make sure to find out why and what can be done to fix it. Don't just jump to another product, do the research.
Being First, Jumping to the Latest and Greatest
Many people like to keep up with the latest versions of software. This is good. However being the first is bad.
Being the first means you may have a problem that can not be fixed. Usually a company will come out with a service pack or hotfix which will solve many problems. This usually does not happen until about 6 months after those people that were first (early adopters) experienced the problems.
Why spend staff time and money trying to figure out problems? Let others make the mistake and go through the hard ache of figuring out the problems. By all means upgrade, just don't be first.
Upgrading Too Often
If you have budgeted for a new computer system, but your current system meets your needs and is efficient, why upgrade? If you can squeeze more life out of a system, do it.
Using Laptops when You Need Desktops
Many people are attracted to laptops. Laptops are usually twice the cost of a similar desktop computer, get lost/stolen more frequently, and people use it as a home personal computer instead of work.
Most people when they get home do not want to do work. Your work laptop then becomes a toy. As a toy, people who take home their work laptop will undoubtably load something that they would not normally load in the office. This causes the laptop not to work, then it is the small business paying the tech to come fix it. You usually don't have this problem with desktops at work.
Many people site portability of a laptop as a reason to get it. However, many people who purchase a laptop seldem use it more than one place. If you already have a laptop, think of where you normally use it...Now think of all the times you actually used it away from that spot. Catch my drift? Is it really worth the extra money for that?
There sometimes is a business reason for a laptop. Salesman on the go might have a business reason for a laptop. Having a laptop for presentations or demonstrations would be another business case to have one. However the secretary who wants to use it at home, probably not a good idea.
Not Standarizing or Streamlining
Every business does something over and over. There are usually many different ways to accomplish the same thing. Some of these ways cost more than others. Create a standard, choose one way and stick with it. Even if there are some times that it is more efficient to do it different. If you stick with it you will find less errors, everyone will learn to do it the same, and ultimately efficiency.
Templating is a form of standardizing often overlooked. Creating a word templates and forms with your for repetative tasks or even saving you money by using your business logo in a template. Takes a little time up front, but then everytime after is a time saver.